Sponsor by Innity

Sponsor by cwyeoh

Sponsor by Nuffnang

Monday, September 24, 2012

MALAYSIA MARINE AND HEAVY ENGINEERING HOLDINGS BERHAD, formerly MSE Holdings Berhad, is a Malaysia-based company engaged in the provision of heavy engineering and marine services, which focuses on the oil and gas sector. The Company operates in two segments: engineering and construction, and marine conversion and marine repair. Its engineering and construction business offers a full range of oil and gas construction and engineering services, from detailed engineering design and procurement to construction, installation, hook-up and commissioning. The Company's marine conversion business includes converting vessels, such as very large crude carriers (VLCCs), Aframax tanker and offshore oil rigs into floating structures for the offshore and gas industry. The marine repair business offers repair, refit and refurbishment services to a range of vessels, with focuses on energy-related vessels, such as chemical tankers, offshore oil rigs, gas carriers and other offshore support vessels.

BUY if stock price keep the strong buy volume above 4.75 or see if can strong rebound around 4.6

Comment

Revenue increased 45.2% and also higher than preceding year corresponding quarter 0.8%, eps decreased 29.2% and also lower than preceding year corresponding quarter 30%, no cash generated from operating due to receivables increased hence spent 39.2% to cover all other expenses, operating margin is very low, weaker liquidity ratio but still indicate financial strength is at acceptable level, very high gearing ratio now but is very well leverage through payables, significant higher receivables most probably to reflect higher revenue in near future

First Support Price

4.75

Second Support Price

4.6

Risk Rating

MODERATE

Research House

Maybank Target Price

5.7 (2012-07-05)

BIMB Target Price

4.9 (2012-08-03)

CIMB Target Price

4.75 (2012-08-03)

ECM Target Price

4.44 (2012-08-03)

HwangDBS Target Price

4.9 (2012-08-03)

Kenanga Target Price

4.22 (2012-08-03)

MIDF Target Price

5.06 (2012-08-03)

OSK Target Price

5.32 (2012-08-03)

RHB Target Price

3.4 (2012-08-03)

TA Target Price

5.86 (2012-08-03)

AMMB Target Price

4.6 (2012-09-18)

Accounting Ratio

Return on Equity

16.23%

Dividend Yield

2.08%

Gross Profit Margin

-

Operating Profit Margin

5.55%

Net Profit Margin

6.27%

Tax Rate

8.21%

Asset Turnover

0.5917

Net Asset Value Per Share

1.6

Net Tangible Asset per share

1.56

Price/Net Tangible Asset Per Share

3.45

Cash Per Share

0.79

Liquidity Current Ratio

1.2215

Liquidity Quick Ratio

1.2176

Liquidity Cash Ratio

0.3212

Gearing Debt to Equity Ratio

1.5562

Gearing Debt to Asset Ratio

0.6085

Working capital per thousand Ringgit sale

22.6%

Days to sell the inventory

2

Days to collect the receivables

334

Days to pay the payables

400

Technical Analysis

SMA 10

4.729 (Uptrend)

SMA 20

4.751 (Uptrend 2 days)

SMA 50

5.045 (Downtrend)

SMA 100

5.039 (Downtrend)

SMA 200

5.195 (Downtrend)

MACD (26d/12d)

-0.057482 ( 0.00879 )

Signal (9)

-0.087648 ( 0.007542 )

MACD Histogram

0.030166 (Bullish trend 13 days)

Bolinger Upper Band

5.053

Bolinger Lower Band

4.449

My notes based on 2012 quarter 2 report (number in '000):-
- Revenue and operating profit for the quarter from Offshore segment were mainly contributed by existing projects in hand and a newly secured Kebabangan project. In the corresponding quarter, higher revenue and operating profit was mainly attributed to the already completed EPCIC Turkmenistan Block 1, Phase 1 project

- Revenue and operating profit of Marine has improved resulting from the progress achieved for FSU Lekas, and higher LNG vessel repair works secured during the quarter as compared to the corresponding quarter. The FSU Lekas has been completed and delivered to client during the quarter

Revenue decreased 1.3% and was second consecutive quarter decreasing but still higher than preceding year corresponding quarter 10.5%, eps decreased 23.8% but higher than preceding year correspnding quarter 22.4%, cash generated from operating enough to cover all expenses, gross margin maintain very high, weaker liquidity ratio but still indicate financial strength is good, higher gearing ratio indicate well leverage to generate more income, all accounting of turnover period is good, all segment business still good

First Support Price

61.0

Second Support Price

54.5

Risk Rating

HIGH

Research House

BIMB Target Price

68.7 (2012-09-03)

CIMB Target Price

55.2 (2012-09-03)

Kenanga Target Price

67.5 (2012-09-03)

Maybank Target Price

54.2 (2012-09-03)

OSK Target Price

61.38 (2012-09-03)

MIDF Target Price

59.52 (2012-09-04)

TA Target Price

59.73 (2012-09-04)

Accounting Ratio

Return on Equity

75.60%

Dividend Yield

2.97%

Gross Profit Margin

33.75%

Operating Profit Margin

12.96%

Net Profit Margin

12.53%

Tax Rate

16.33%

Asset Turnover

2.3856

Net Asset Value Per Share

2.81

Net Tangible Asset per share

2.55

Price/Net Tangible Asset Per Share

25.11

Cash Per Share

0.34

Liquidity Current Ratio

1.0068

Liquidity Quick Ratio

0.5425

Liquidity Cash Ratio

0.0824

Gearing Debt to Equity Ratio

1.9707

Gearing Debt to Asset Ratio

0.6634

Working capital per thousand Ringgit sale

0.1%

Days to sell the inventory

53

Days to collect the receivables

35

Days to pay the payables

93

Technical Analysis

SMA 10

63.212 (Downtrend)

SMA 20

63.101 (Uptrend 67 days)

SMA 50

60.868 (Uptrend)

SMA 100

57.925 (Uptrend)

SMA 200

55.962 (Uptrend)

MACD (26d/12d)

0.588259 ( 0.053887 )

Signal (9)

0.818617 ( 0.05759 )

MACD Histogram

0.230358 (Bearish trend 6 days)

Bolinger Upper Band

66.694

Bolinger Lower Band

59.508

My notes based on 2012 quarter 2 report (number in '000):-
- Higher revenue and pbt than FY11Q2 mainly due to higher domestic sales but the export sales were flat for the quarter due to the lower demand experienced in some export markets

- The strong domestic sales were driven by the performance of the fast growing categories within the Group's portfolio, in particular Confectionery, Nestlé Liquid Drinks, Chilled Dairy and Ice Cream, which registered a robust double digit growth. The good sales results were due to the continuous investments in consumer communication

- Lower pbt than FY12Q1 largely due to the marketing and promotional activities which were typically more concentrated in the second quarter

Not interested unless pbt increase more which can enough to cover good dividend rate or base on technical analysis which stock price continue strong sustain above SMA50

Comment

Revenue increased 22.8% and also higher than preceding year corresponding period 1.6%, eps decreased 51.8% and also lower than preceding year corresponding quarter 33.9%, cash generated from operating not enough to cover financing expenses hence increased borrowings and spent 33.2% of Group cash to cover other expenses, margin decreasing to low level, liquidity ratio indicate financial strength is weakeaning but still acceptable level, higher gearing ratio indicate more leverage to generate more income in the future by more investment and the current ratio still not worry by lender, all accounting of turnover period is good, higher inventory can indicate Group products demand still strong

First Support Price

19.2

Second Support Price

17.8

Risk Rating

HIGH

Research House

MIDF Target Price

14 (2012-02-08)

AMMB Target Price

18.1 (2012-08-08)

CIMB Target Price

13.4 (2012-08-08)

Maybank Target Price

20.79 (2012-08-08)

TA Target Price

18.22 (2012-08-08)

Accounting Ratio

Return on Equity

16.54%

Dividend Yield

2.41%

Gross Profit Margin

-

Operating Profit Margin

6.23%

Net Profit Margin

6.08%

Tax Rate

5.26%

Asset Turnover

1.2787

Net Asset Value Per Share

4.03

Net Tangible Asset per share

3.66

Price/Net Tangible Asset Per Share

5.56

Cash Per Share

0.53

Liquidity Current Ratio

1.3253

Liquidity Quick Ratio

0.8356

Liquidity Cash Ratio

0.1995

Gearing Debt to Equity Ratio

0.8001

Gearing Debt to Asset Ratio

0.4444

Working capital per thousand Ringgit sale

9.4%

Days to sell the inventory

55

Days to collect the receivables

61

Days to pay the payables

86

Technical Analysis

SMA 10

19.56 (Downtrend)

SMA 20

19.843 (Downtrend 8 days)

SMA 50

19.283 (Uptrend)

SMA 100

18.735 (Uptrend)

SMA 200

18.199 (Uptrend)

MACD (26d/12d)

-0.025559 ( 0.006648 )

Signal (9)

0.086048 ( 0.027902 )

MACD Histogram

0.111607 (Bearish trend 20 days)

Bolinger Upper Band

20.719

Bolinger Lower Band

18.967

My notes based on 2012 quarter 3 report (number in '000):-
- Higher revenue mainly due to Dairies Thailand well executed marketing activities in conjunction with the resumption of production in Rojana pent-up demand from the consumer and trade

- Lower pbt mainly attributable to the absense of Coca-Cola contribution, a restructuring charge of RM8.3 million incurred by the soft drinks division as part of its on-going rationalisation exercise to improve productivity, accelerated depreciation on PJ factory building and higher marketing expenses in Thailand offset by reversal of provision for compensation of RM5 million

Revenue decreased 5.6% and was second consecutive quarter decreasing but still higher than preceding year corresponding quarter 15%, eps increased 4.2% and also higher than preceding year corresponding quarter 69.3%, cash generated from operating more than enough to cover all expenses, margin is maintain good, liquidity ratio indicate financial strength is very strong now, lower gearing ratio can indicate not able to generate more return with leverage but is free of lender issue, all accounting of collection or repayment perid is good

First Support Price

0.28

Second Support Price

0.26

Risk Rating

MODERATE

Accounting Ratio

Return on Equity

20.71%

Dividend Yield

8.64%

Gross Profit Margin

-

Operating Profit Margin

16.62%

Net Profit Margin

16.45%

Tax Rate

5.13%

Asset Turnover

1.174

Net Asset Value Per Share

0.34

Net Tangible Asset per share

0.34

Price/Net Tangible Asset Per Share

0.91

Cash Per Share

0.1

Liquidity Current Ratio

6.1666

Liquidity Quick Ratio

3.5419

Liquidity Cash Ratio

2.4926

Gearing Debt to Equity Ratio

0.1922

Gearing Debt to Asset Ratio

0.1544

Working capital per thousand Ringgit sale

41.5%

Days to sell the inventory

91

Days to collect the receivables

30

Days to pay the payables

33

Technical Analysis

SMA 10

0.29 (Same)

SMA 20

0.294 (Downtrend 20 days)

SMA 50

0.298 (Same)

SMA 100

0.281 (Same)

SMA 200

0.276 (Same)

MACD (26d/12d)

-0.002413 ( 0.000505 )

Signal (9)

-0.002425 ( 3e-006 )

MACD Histogram

0.000012 (Bullish trend 1 day)

Bolinger Upper Band

0.315

Bolinger Lower Band

0.273

My notes based on 2012 quarter 3 report (number in '000):-
- Higher revenue and pbt than FY11Q3 was attributed to better selling price of certain product and an increase in volume of product sold and higher profit margin

- Higher pbt than FY12Q2 mainly attributable to the one off expenses, bonus payout to employees expenses incurred in the preceding quarter Q2FY2012

- In FY2010, revenue recorded RM110 million and profit RM21.7 million
- In FY2009, revenue recorded RM108.4 million and profit RM22.7 million
- In FY2008, revenue recorded RM92.6 million and profit RM12.4 million
- In FY2007, revenue recorded RM73.8 million and profit RM10.5 million

Revenue increased 5.9% and was fourth consecutive quarter increasing(higher than preceding year corresponding quarter 43.6%), eps increased 81.2% and also higher than preceding year corresponding quarter 305.3%, cash generated from operating more than enough to cover all expenses, maintain very high margin, liquidity ratio indicate financial strength still very strong although is weakening in recent year, higher gearing ratio with higher profit in current quarter indicate if this consistent can bring more income in the future and still no concern on lender issue

First Support Price

0.98

Second Support Price

0.84

Risk Rating

MODERATE

Research House

Kenanga Target Price

1 (2012-08-14)

Jupiter Target Price

1.22 (2012-08-29)

Accounting Ratio

Return on Equity

10.56%

Dividend Yield

4.72%

Gross Profit Margin

-

Operating Profit Margin

57.24%

Net Profit Margin

10.58%

Tax Rate

-

Asset Turnover

0.938

Net Asset Value Per Share

0.64

Net Tangible Asset per share

0.62

Price/Net Tangible Asset Per Share

1.07

Cash Per Share

0.14

Liquidity Current Ratio

3.0317

Liquidity Quick Ratio

2.5321

Liquidity Cash Ratio

0.735

Gearing Debt to Equity Ratio

0.3118

Gearing Debt to Asset Ratio

0.2368

Working capital per thousand Ringgit sale

48.0%

Days to sell the inventory

101

Days to collect the receivables

146

Days to pay the payables

175

Technical Analysis

SMA 10

1.016 (Uptrend)

SMA 20

1.003 (Uptrend 65 days)

SMA 50

0.839 (Uptrend)

SMA 100

0.676 (Uptrend)

SMA 200

0.578 (Uptrend)

MACD (26d/12d)

0.051304 ( 0.000562 )

Signal (9)

0.059368 ( 0.002016 )

MACD Histogram

0.008064 (Bearish trend 8 days)

Bolinger Upper Band

1.2

Bolinger Lower Band

0.806

My notes based on 2013 quarter 1 report (number in '000):-
- Higher revenue and pbt mainly attributable to the increase in the local and export sales from the Group’s Fast Moving Consumer Goods (“FMCG”) business

Revenue decreased 0.6% but higher than preceding year corresponding quarter 9.4%, eps increased 0.4% and was second consecutive quarter increasing and also higher than preceding year corresponding quarter 41.5%, cash generated from operating not enough to cover financing expenses hence spent 18.3% of Group cash to cover all other expenses, maintaine high margin, liquidity ratio indicate financial strength still good although is weakening recently, high gearing ratio with high profit indicate great deal of leverage but increase concern on lender, all accounting of collection or repayment period is still manageable , higher property development cost can indicate property business still good prospects

First Support Price

2.15

Second Support Price

2.0

Risk Rating

MODERATE

Research House

HLG Target Price

2.37 (2012-05-29)

OSK Target Price

2.69 (2012-05-29)

AMMB Target Price

3.6 (2012-08-17)

CIMB Target Price

2.71 (2012-08-17)

Maybank Target Price

2.38 (2012-08-17)

MIDF Target Price

2.85 (2012-08-17)

TA Target Price

2.77 (2012-08-17)

Kenanga Target Price

2.4 (2012-09-13)

Accounting Ratio

Return on Equity

20.02%

Dividend Yield

4.95%

Gross Profit Margin

28.57%

Operating Profit Margin

17.62%

Net Profit Margin

18.22%

Tax Rate

27.47%

Asset Turnover

0.5656

Net Asset Value Per Share

1.34

Net Tangible Asset per share

1.33

Price/Net Tangible Asset Per Share

1.79

Cash Per Share

0.66

Liquidity Current Ratio

2.6497

Liquidity Quick Ratio

1.0173

Liquidity Cash Ratio

0.5198

Gearing Debt to Equity Ratio

1.7363

Gearing Debt to Asset Ratio

0.632

Working capital per thousand Ringgit sale

100.3%

Days to sell the inventory

502

Days to collect the receivables

109

Days to pay the payables

264

Technical Analysis

SMA 10

2.214 (Downtrend)

SMA 20

2.256 (Downtrend 9 days)

SMA 50

2.157 (Uptrend)

SMA 100

2.024 (Uptrend)

SMA 200

1.969 (Uptrend)

MACD (26d/12d)

-0.00224 ( 0.000659 )

Signal (9)

0.017797 ( 0.005009 )

MACD Histogram

0.020037 (Bearish trend 19 days)

Bolinger Upper Band

2.411

Bolinger Lower Band

2.101

My notes based on 2012 quarter 2 report (number in '000):-
- As at 30 June 2012, the Group’s remaining undeveloped land was 1,495 acres and approximately RM18.0 billion in total remaining GDV and unbilled sales

- Plastics segment continued to contribute positively to group revenue and profit. Whilst revenue grew marginally by 1%, profit margin was affected by foreign exchange difference and higher staff costs as a result of minimum wage ruling in Indonesia

Sunday, September 9, 2012

SIME DARBY BERHAD, formerly Synergy Drive Bhd, is an investment holding company engaged in the trading and marketing of commodities. The Company operates in six segments: plantations, which is engaged in palm oil refining and fractionation, and oil palm cultivation; property, which is engaged in property development, management and investment, as well as the provision of golf and other recreational services; industrial, which is engaged construction of highways and railways, buildings, international airports and dams, powering marine engines for police launchers and fishing trawlers at sea; motor vehicles, which is engaged in the assembly and distribution of vehicles, provision of after-sale services, and hire purchase and lease financing; energy and utilities, which is engaged in engineering design and fabrication, system integration, power generation, treatment and supply of treated water, and general trading, services and others.

Not interested unless CPO price can stay strong above 3k and back to uptrend or stock price strong stay above Bolinger upper band

Comment

Revenue increased 28.1% and also higher than preceding year corresponding quarter 8.1%, eps increased 25.4% but lower than preceding year corresponding quarter 16.3%, cash generated from operating enough to cover financing expenses but still incresed borrowings and spent 7.1% of Group cash to cover all other expenses, margin decreasing, liquidity ratio indicate financial strength is getting weaker but still good for the Group, slightly better gearing ratio but still indicate the financial leverage strength is weaker than earlier, all accounting of repayment and collection period is good, higher inventory can indicate better demand of Group products, CPO price in downtrend, most segment still growth

First Support Price

9.7

Second Support Price

9.5

Risk Rating

MODERATE

Research House

Alliance Target Price

11.7 (2012-08-30)

AMMB Target Price

12.06 (2012-08-30)

ECM Target Price

9.71 (2012-08-30)

HLG Target Price

10.48 (2012-08-30)

HwangDBS Target Price

10.6 (2012-08-30)

Kenanga Target Price

10.3 (2012-08-30)

Maybank Target Price

11 (2012-08-30)

MIDF Target Price

11.8 (2012-08-30)

OSK Target Price

11.18 (2012-08-30)

RHB Target Price

11.65 (2012-08-30)

TA Target Price

11.62 (2012-08-30)

CIMB Target Price

11 (2012-09-06)

Public Target Price

11.21 (2012-09-06)

Accounting Ratio

Return on Equity

16.72%

Dividend Yield

3.58%

Gross Profit Margin

0.00%

Operating Profit Margin

10.35%

Net Profit Margin

10.19%

Tax Rate

19.23%

Asset Turnover

0.9881

Net Asset Value Per Share

4.33

Net Tangible Asset per share

4.18

Price/Net Tangible Asset Per Share

2.34

Cash Per Share

0.85

Liquidity Current Ratio

1.5518

Liquidity Quick Ratio

0.8581

Liquidity Cash Ratio

0.3116

Gearing Debt to Equity Ratio

0.8183

Gearing Debt to Asset Ratio

0.4418

Working capital per thousand Ringgit sale

19.0%

Days to sell the inventory

99

Days to collect the receivables

65

Days to pay the payables

84

Technical Analysis

SMA 10

9.795 (Same)

SMA 20

9.798 (Downtrend 3 days)

SMA 50

9.855 (Downtrend)

SMA 100

9.78 (Same)

SMA 200

9.511 (Uptrend)

MACD (26d/12d)

-0.013895 ( 0.000712 )

Signal (9)

-0.014406 ( 0.000128 )

MACD Histogram

0.000511 (Bullish trend 1 day)

Bolinger Upper Band

9.869

Bolinger Lower Band

9.727

My notes based on 2012 quarter 4 report (number in '000):-
- Lower pbt from Plantation segment than FY11Q4 largely due to the lower fresh fruit bunches (FFB) production in spite of the higher average crude palm oil(CPO) price realised of RM2,925 per tonne against RM2,906 per tonne in the previous year

- Group FFB production was lower by 3.4% at 9.8 million tonnes (2011: 10.1 million tonnes) as both Malaysia and Indonesia recorded lower production by 1.6% and 6.6% respectively, attributable to the effects of weather and tree stress. Oil extraction rate (OER) was however higher at 21.8% as compared to 21.4% a year ago

- Midstream and downstream results were adversely affected largely due to the loss incurred by an overseas refinery whilst the Malaysian operations was impacted by lower utilisation and tight margins following the latest Indonesia’s export tax structure. It reported a loss of RM62.3 million for the current financial year from the loss of RM74.6 million the previous year which included an impairment of RM114.0 million

- Industrial segment experienced robust demand especially from the mining, logging and construction sectors in Australasia, Malaysia and Singapore except for China/Hong Kong, which was affected by the local government policy of tightening credit to address inflation

- Contribution from Motors division continued to grow due mainly to the strong demand in Malaysia, Singapore and New Zealand despite the weaker sales from China

- Lower pbt from Energy & Utilities mainly due to the run-off costs on the on-going projects in the oil and gas operations which was partially offset by higher profits from the Utilities operations in China. The Port operations have recorded higher cargo handling throughput at Weifang Port following the completion of the 3 x 10,000 tonnes berth in December 2011

- The results from Healthcare was about the same as last year’s level as the impact from higher inpatient and outpatient volume was moderated by the slower nursing education sector and the start-up expenses for the new Ara Damansara hospital

- Other businesses achieved a turnaround by registering a profit of RM68.8 million as compared against last year’s loss of RM42.0 million. This was a result of the higher contribution from Tesco and the insurance brokerage business including a profit of RM29.7 million from the disposal of an investment as against the impairment of an available for sale investment of RM54.3 million in the previous year